The Spanish property market recovery is being driven by a growing jobs market and favourable economic conditions; however Brexit negotiations could halt property purchases made by British buyers.

Spanish property sales have been rising at double digit rates, with a majority of purchases occurring on the Mediterranean coast and in the Canary and Balearic Islands. In fact, over 30% more property sales occurred in these areas than in other part of the country, says a report by CaixaBank Research.

Purchasing trends very much depend on the nationality of the buyer, especially if they are from the UK. The pound to Euro exchange rate has fallen dramatically since Brexit and the current negotiations by the UK government could be prompting Brits to take a ‘sit and wait’ approach. In Q1 2017, Spanish property purchases by British buyers fell by 13% year-on-year, according to the report.

However, the fall in the number of British buyers in Q1 has been offset by a rise in the number of buyers from other nations, such as France, Germany, Belgium and Sweden. In Q1 2017, purchases from these nationals rose by 20% or more year-on-year, the report shows.

Buyers from the UK still account for the largest number of foreign property transactions, making up 15% of the foreign market share in Q1, although this figure stood at 21% in 2015.

If Brexit negotiations are favourable and if the pound starts recover, British buyers could be enticed back to the Spansih property market. However, some members of parliament are campaigning for a ‘hard Brexit’ which “could cast a cloud over any recovery…UK nationals have traditionally been very sensitive to economic conditions in their own country,” says CaixaBank Research.